Benchmark on Wednesday lowered its 12-month price target for Pinterest Inc (NYSE:PINS) to $34.00 from $39.00 but maintained a Buy rating on the social media companys shares. The trimmed target remains well above the stocks prevailing market price of $19.32, with the share price trading just above its 52-week low of $19.05.
The adjustment was disclosed a day ahead of Pinterests scheduled fourth-quarter earnings release, set for after the market close on Thursday, February 12, 2026. The stock has experienced a notable pullback, falling 40.54% over the past six months, even as the broader analyst consensus still skews toward buying; consensus recommendations sit at 1.65, reflecting a tilt toward a Buy position.
Benchmark framed the lower target around what it described as "muted UCAN ARPU expectations" for the coming 12 months, signaling restrained near-term monetization in the U.S. and Canada. The firm also pointed to potential cost actions, noting management could pursue a reduction in force affecting as much as 15% of total headcount to create "a more appropriate balance between revenue growth and profitability."
In Benchmarks view, that balance could improve further as automation becomes more prevalent over the next 12 months and beyond, a development the firm said may help shift investor sentiment over time. The firms commentary sits alongside valuation metrics referenced by InvestingPro data, which indicate the stock trades at a price-to-earnings ratio of 6.72, a level Benchmark and some market participants interpret as signaling the name may be undervalued given recent price weakness.
Other sell-side voices show a divided picture ahead of the print. BofA Securities expects Pinterests fourth-quarter revenue to be $1,332 million, a touch above the $1,330 million consensus figure cited by the bank, and projects 15% year-over-year revenue growth - a pace that would represent a two percentage-point slowdown from the prior quarter.
Board-level changes were also announced: Kecia Steelman, CEO of Ulta Beauty, has been appointed to Pinterests Board of Directors, effective February 2026.
Analyst moves in recent days underline the mixed tone across the street. HSBC downgraded Pinterest from Buy to Hold and trimmed its target to $24.90 from $34.50, pointing to concerns tied to the company's AI investments. Bernstein SocGen reduced its price objective to $32.00 from $40.00 but kept an Outperform rating, citing mixed signals on revenue. Guggenheim retained a Buy rating with a $38.00 target despite noting a decline in Pinterests global Ads Manager audience reach. BofA reiterated its Buy and the $39.00 price target it had published ahead of the earnings report.
Taken together, the sell-side revisions and Benchmarks repositioning highlight a market grappling with trade-offs between near-term monetization and longer-term investment choices, as well as how cost measures and automation could shape profitability profiles.
Key Points
- Benchmark lowered its Pinterest price target to $34 from $39 and kept a Buy rating.
- Potential headcount reduction of up to 15% and increased automation cited as levers to improve profitability.
- Consensus across analysts remains mixed, with revenue expectations roughly in line and differing views on AI spending and audience reach.
Risks and Uncertainties
- Near-term revenue and ARPU: Benchmark highlighted "muted UCAN ARPU expectations" for the next 12 months - a direct constraint on top-line performance and ad-market recovery.
- Operational changes: A potential reduction in force of up to 15% of total headcount creates execution and integration risks as the company attempts to rebalance growth and profitability.
- Strategic investment uncertainty: HSBC cited concerns about Pinterests AI investments, reflecting differing analyst perspectives on how company spending will affect future returns and audience metrics.
Market Impact
- Sector impact: The developments primarily affect the social media and digital advertising sectors and have relevance for technology and market investors monitoring ad-revenue cycles.
- Investor implications: Valuation metrics such as a P/E of 6.72 are being weighed against operational headwinds and varying sell-side targets when assessing upside potential.